Skills and Post-16 Education Bill [Lords] Debate

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Department: Department for Education
Robert Halfon Portrait Robert Halfon
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My hon. Friend is right. By the way, the prison that the Select Committee visited is an extraordinary place—it was like going to a further education college for prisoners in category D. It had a jobcentre to get the prisoners into work and into skilled jobs. It is the kind of prison that should be replicated around the country.

As for Timpson, no one could say anything bad about that wonderful company—I say that as someone who gets his shoes, his belt and his watch fixed there. I have met employees who are former convicts, and they are extraordinary people. Timpson is a remarkable company and I hope that many other companies follow its example—just so that you are clear, Mr Deputy Speaker, I do not get any money for this, and I have no interest to declare.

Kate Green Portrait Kate Green (Stretford and Urmston) (Lab)
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New clause 1 is excellent, and I agree with the right hon. Gentleman that it is good news that the Department and the Ministry of Justice want to work together on it. However, will he join me in urging Ministers to take special note of the position of women offenders and of the opportunities that apprenticeships can offer them?

Robert Halfon Portrait Robert Halfon
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As so often, the hon. Lady has got it absolutely right, and I am sure the Secretary of State has heard what she said. I hope very much that that is part of the regulations that he and the Justice Secretary introduce.

New clause 2 would provide funding for level 2 education and skills training for any person of any age, providing that they can demonstrate their intent to progress to level 3. The Education Committee’s adult skills and lifelong learning inquiry identified significant problems with low basic skills. Over 9 million working-age adults have poor literacy or numeracy skills, and 6 million adults do not have a level 2 qualification. Some 49% of adults from the lowest socioeconomic group have received no training since leaving school, and in the last 10 years just 17% of low-paid workers moved permanently out of low pay.

The lifelong learning entitlement is a really welcome intervention, allowing adults to undertake level 3 qualifications—the equivalent of an A-level—to retrain for different and better-paid jobs. However, we know that many of these adults will not have the skills needed to go straight into level 3 without further support. Level 2 qualifications are a key stepping-stone for progression for low-skilled adults. They provide those who have left school without GCSEs or equivalent qualifications with a vital chance of learning. Not having that stepping-stone of support is like asking someone who has little maths ability to dive straight into the deep end of A-levels without first learning to swim by taking GCSEs.

However, I recognise that there is a financial cost and that we are in difficult financial times. In 2018-19—the last year before covid—the adult education budget had a £56 million underspend nationally. More recently the trend of underspend has continued. In London only £110.6 million—60.7% of the £182 million given out to grant-funded providers through the adult education budget—had been spent by April 2021.

Investing in level 2 provision provides value for money for the taxpayer. Estimates suggest that for every £1 spent the net value is £21 and that could contribute an additional £28 billion to the economy. The Further Education Trust for Leadership review estimates that an additional £1.9 billion per year could be used to fund level 2 qualifications in maths, English and digital skills for the 4.7 million adults without such qualifications.

I get the financial restraints, which is why I will not press this new clause to a Division. However, I ask that the Government genuinely commit to look at funding options in the next spending review and particularly at using the underspend from budgets such as the adult education budget, even if they just introduce these provisions for maths and English. I would welcome the Minister’s views on that when he responds.

Finally, let me turn to the new clause I care most about. New clause 3 seeks to increase the number of careers guidance encounters that young people have at school and to toughen up what is called the Baker clause. As has been mentioned, I was the skills Minister responsible for bringing in the Baker clause in 2017, but despite the good intentions of all involved it has not been implemented correctly.

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Siobhan Baillie Portrait Siobhan Baillie (Stroud) (Con)
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I rise to speak on new clause 4 and will make a brief round-up in support of new clauses 2, 5 and 7.

On new clause 4—our proposal for a green skills strategy—I and others firmly believe that we have a green skills emergency and that net zero cannot happen without know-how. Existing workers, who in some cases are already losing their jobs due to covid or chronic instability in the oil and gas sector, can be brought over to new industries such as wind, low carbon, hydrogen and energy-efficient homes. Meanwhile, young people want to work in sectors they know are good for them and good for the planet. Providing green skills is therefore a positive part of the net zero debate. I ask my hon. Friend the Minister, and the Department, to seize this opportunity, with his leadership and influence over other Departments. Young people will not only be prepared for the future, but provide solutions for the future.

I welcome the much-needed focus on how the country will deliver its net zero targets, and what they mean for individuals and families. That honest conversation cannot come soon enough. We have lived with our 2050 targets for some time now. The majority of people want to protect the planet and ensure they leave a healthy environment for their children, grandchildren and future generations. Yet people are nervous. With inflation and energy prices starting to bite and the cost of paying for the pandemic in the background, it is understandable that suggestions that they are going to be forced into changing their cars, changing the way they live or insulating their homes in an expensive way are quite terrifying for some. However, when I speak to families who are worried about that aspect of the 2050 targets, they are absolutely clear that they recognise there are jobs to be had not only for them, but their children.

We know that the market will do a lot of the work of creating demands for a skilled net zero workforce, but the market also needs help to plug gaps to ensure the right qualifications are in the right place. Unfortunately, education settings are not quite there yet. They need more support to deliver courses and qualifications. My right hon. Friend the Member for Kingswood (Chris Skidmore) made a few points about what we are missing. Only 5% of mechanics know how to fix an electric car. In 2019, only 3,500 workers could install energy-efficient measures. It is estimated that we will need an additional 20,000 engineering graduates a year.

In Stroud, a combination of businesses—Active Building Centre, South Gloucestershire and Stroud College, The Green Register—have come together. We recognise there is a lack of standardisation in qualifications, and a lack of understanding and confidence on the part of the public around being able to hire people who know what is best for their homes and next steps. If we do not grasp this issue, we will not provide that confidence to the public and to the tradespeople who want to retrain and reskill. They will not invest in a course if they do not think it will be important next year and the year after. They want guidance from the Government and they need to know that the public will believe in it. I fear that if we do not do that, we will end up with cowboys in the market or people not taking the actions we know they need.

It is not just my amazing Stroud experts who talk to me about this issue all the time, but small, medium and big companies. I have had some good conversations with SSE, which was one of the first companies in the world to publish a just transition strategy. It sets out a number of principles for supporting the transition to net zero in a socially just and fair way. Key principles for green jobs and skills include guaranteeing fair and decent work, and attracting and growing talent. It has created principles for action and I urge the Department to look at them if it has not already done so. I believe the example recommendations for the Government fit very neatly into what we think could be a green skills strategy by the Department for Education, the Department for Business, Energy and Industrial Strategy and the Government as a whole.

Arguably, the Government do not need to wait for Back-Bench MPs to agitate for a green skills strategy and nor does it really need to be in legislation. My hon. Friend the Minister can agree to create a green skills strategy, or get his bosses to do so, and set out a plan to support people to attain education that creates the support and meets environmental goals. I therefore urge the Education team to work with us those of us on the Back Benches to do that work and support the plans. We can certainly bring some fantastic examples to make that a reality.

Very briefly, in conjunction with my local further education college, South Gloucestershire and Stroud College, which the Minister very kindly came to visit, I support new clauses 2 and 7, which put the lifetime skills guarantee on a statutory footing and extend it to level 3 courses, so that those without A-level or equivalent qualifications will still benefit from fully funded courses. I believe that the college spoke to the Minister about that when he was with us. I also support new clause 5, on reforming benefit entitlement rules, so that people on benefits can still attend college while unemployed without losing out. However, I am very grateful for the passage of the Bill at pace.

Kate Green Portrait Kate Green
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There are very many sensible amendments before us this evening. I am very pleased to support new clause 16 on adult literacy, tabled by my hon. Friend the Member for Wirral West (Margaret Greenwood), and to add my name to new clause 13, which my right hon. Friend the Member for East Ham (Stephen Timms) has just spoken about, on an issue of great importance to my constituents. Many Muslim families are unable to access non-compliant funding and are forced, as a result, to either wait many years while they save up to pay outright or take out a loan they feel uncomfortable with that is incompatible with their faith. I also know of families who have been able to send only one child to university, an invidious decision for any family to have to make. As we have heard, it is simply ridiculous that nine years after David Cameron first, and rightly, committed to taking action on sharia-compliant funding, we still have no timeline even for when the Government intend to bring forward proposals.